The Hype At Priceline
 

Fortune Magazine printed a revealing article in their most recent issue, describing the "smoke and mirrors" behind Priceline:

http://www.pathfinder.com/fortune/1999/09/06/pri.html

Thank you, very interesting article.

Very interesting indeed. I never really considered using Priceline, and now I understand why! The only consumer purchases most people ever make where they negotiate price are cars and real estate. I don't know a lot of people who enjoy shopping this way. Priceline works like the car dealer who asks you "How much will you pay to leave with this car today?" If you bite, you'll never know how much less you could have gotten it for. On the other hand, when you buy soap at the store, based on the posted price (there and elsewhere), A&P and Proctor & Gamble never know how much more you might have been prepared to pay. I much prefer the latter system.

Very good article, even as a leisure traveller I would not want to put up with the restrictions of Priceline tickets unless there is literally no where else to turn.

I can't see myself buying anything from Priceline anytime soon. The restrictions are unbelievable (can't even choose your own airline or time). My schedule is flexible at times but not THAT flexible. As for it being the future of Internet commerce, I'm not so sure. Can anyone imagine bidding on a car without knowing the make and model? More likely, the model will evolve to where it is a true auction and you know what you are getting.

I have used Priceline for a leisure hotel booking. I think that there will be a market for Priceline. But as pointed in the article - for that market there may be other alternatives (especially for airline tickets, where the competitors may offer better choices). And for that market, Priceline stock is really overvalued.

The restrictions that are inherent with their airline booking do seem to scare away quite a few people, but I was very happy with my experience with them when I got a last minute ticket to West Palm Beach from New Orleans for $185 instead of the $500 I was getting quoted everywhere else ...

Also, I think the hotel business may hold even more promise, because you can designate the location and quality pretty specifically, the proposition looks much more attractive. I have also heard of nothing but good experiences so far from people using the hotel booking service (with the prevalent theme being "I can't believe what a nice hotel I got for the price").

I was satisfied with my hotel booking also. Beckles - for air travel, the article mentions CheapTickets and BestFares as competitors. Do you have any head to head comparison with those (are those the ones included in your $500 quotes)?

The winner at Priceline seems to be Delta Airlines. The deal they put together for themselves is brilliant:

• They get priority carrier treatment
• Get to dump potentially stale inventory at last minute
• Minimal marketing costs (no commissions, advertising costs, etc.)
• Ability to generate additional revenue on tickets if Priceline manages to get margins above 14%
• Enhances Delta's balance sheet with Priceline's (albeit overpriced) stock

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I'm not a big fan of Delta as an airline, but I've gotta give them credit as dealmakers!

I don't recall exactly which sites I checked, but I know I looked at a lot of them when I was doing that trip!

I'll have to keep an eye on CheapTickets.com, but I don't know if I believe what their CEO claims in that article, especially about them having access to the same prices as Priceline. I would be willing to bet that DL and CO in particular give Priceline better deals because of the ownership stakes.

I know there are fans of Priceline... but I have three major problems with the service:

*The Restrictions (as MileKing explained very well)
*The chance you may NOT get the best fare.
*The spokesman (For me the REAL Captain of StarTrek is Picard not Mr. Annoying Voice.)

I have used Cheaptickets and always check them when buying a ticket on my own dime. Twice I got about 10% savings ($20 on $211) on IAH-SLC on CO nonstops. I chose the times and compared the prices and got my miles. Just open two browser windows and have Cheaptickets and some other service (I use ITN) price the seats at the same time.
Usually there are the best discounts on TW and AWA. But know this, the change fee is supposed to be $150 on the tickets and they are not upgradeable. (That said, I changed one reservation for $75 and got upgraded on another.)

The uncertainty of airline and time on Priceline.com is what keeps me away.

BSL

Would avoid airlines except when desperate;
however, the hotel deals are good. You just have to know a little about your intended location and pick the quality where you can eliminate the fleabag places. That way, for example a 3 star in Savannah historic district(no 4 stars there) can get Marriott ot Hyatt on river for around $60/night. Just
don't get sick between reservations and the travel date!

I don't use Priceline because it doesn't let me choose carriers and you don't earn miles! And yes, Catman, having Captain Kirk tell me that "this is BIG, REAL BIG..." is just annoying. http://talk.flyertalk.com/forum/smile.gif

Here's a nice caveat for Starwood Preferred Guest members I just ran across:

(From the "1999 Starwood Preferred Guest Terms and Conditions")

"Starpoints can not be earned or accrued for charges master-billed or paid for by wholesale tour or other vouchers including, without limit, airline and priceline.com vouchers" (emphasis added)

So... forwarned is forearmed!